I don't think they are making a profit yet. I think they are after market domination - and my reasons for thinking this is that they are in the same business in at least 3 African countries. I might be wrong, but I think this is their plan

- Advertise the service heavily and get everyone to know about it & use it. - Beat competitors, dominate the market by making people familiar and comfortable with their service- Improving the service and offer customers what they want for free (big database of items in Nigeria for sale)- Introduce paid adverts after all this is completed - to recoup investment.

I think they can afford to take the first 4 steps above without any revenue because they have outside investment. Thus they are spending now, to by a share of the market now in the hopes that they make money from the large market share in the future.

naijacutee:I don't think they are making a profit yet. I think they are after market domination - and my reasons for thinking this is that they are in the same business in at least 3 African countries. I might be wrong, but I think this is their plan

- Advertise the service heavily and get everyone to know about it & use it. - Beat competitors, dominate the market by making people familiar and comfortable with their service- Improving the service and offer customers what they want for free (big database of items in Nigeria for sale)- Introduce paid adverts after all this is completed - to recoup investment.

I think they can afford to take the first 4 steps above without any revenue because they have outside investment. Thus they are spending now, to by a share of the market now in the hopes that they make money from the large market share in the future.

I posted something like this on another threadAdvertising makes good money if the site is getting lot of traffic.Most of the site online turns into a business when it starts getting traffic.OLX: AdvertisingVconnect: Advertising + premium B2B offers via email marketing.Naij: AdvertisingNairaland: Advertising.You can start a site like this if you have resources to make people know it exist. Often, the success of an internet business depends on how you make people find it.Then, it can later spread through word of mouth.

talk2D: I posted something like this on another threadAdvertising makes good money if the site is getting lot of traffic.Most of the site online turns into a business when it starts getting traffic.OLX: AdvertisingVconnect: Advertising + premium B2B offers via email marketing.Naij: AdvertisingNairaland: AdvertisingYou can start a site like this if you have resources to make people know it exist.

.Thanks for the detail contribution, but in the case of Nairaland, adverts are paid for unlike OLX.

When people talk about traffic, i understand it's the rate at which our site is visited and sites that makes profit from traffic are either running some kind of pay-per-click ad. Or run google ad but this isn't the case with OLX.

mhozzis:.Thanks for the detail contribution, but in the case of Nairaland, adverts are paid for unlike OLX.

When people talk about traffic, i understand it's the rate at which our site is visited and sites that makes profit from traffic are either running some kind of pay-per-click ad. Or run google ad but this isn't the case with OLX.

MAYB I DON'T UNDERSTAND YOU SHA

if you have a look at their site i think you will notice, they support contextual adverts. Very discrete but yet productive.

They get their Commission through Adverts and Site Traffic, if you are asking how OLX make their Profit, then you should be asking SEUN how he makes his, some sites are connected to others like Facebook just to drive Traffic, and same thing goes on with OLX. Traffic and Advert Placement gives them their Profits, they are in so many Countries and as such has a high number of Visits daily

Adex097:I swear, I was thinking about this yesterday when I saw the advert by seyi_law...and I was like [size=32pt]"when will Nairaland start its own adert"[/size]

and who told u Seun is ready to do dat?dat guy wey dey smile like woman so

for the OLX, dey are making their cool money through traffic and signing up using third-party program dat depends on high traffic. not necessary banners must be placed on their site for to click before they get money. high traffic does dat for them.